UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-3056
TRIDAN CORP.
(Exact name of registrant as specified in charter)
477 Madison Avenue, New York, NY 10022
(Address of principal executive offices)
I. Robert Harris, c/o Kantor, Davidoff, Wolfe, Mandelker & Kass, P.C.
51 East 42nd Street, New York, NY 10017
(Name and address of agent for service)
Registrant's telephone number, including area code: (212) 371-2100
Date of fiscal year end: April 30, 2004
Date of reporting period: April 30, 2004
Item 1. Reports to Stockholders.
Attached on the following pages is a copy of the registrant's annual
report as of April 30, 2004 transmitted to stockholders.
1
June 17, 2004
Dear Shareholder:
Enclosed is the annual report of Tridan Corp. for the fiscal year ended April
30, 2004, the proxy statement outlining the matters to be voted upon at the July
1, 2004 shareholders' meeting and the Company's privacy policy.
For the fiscal year ended April 30, 2004, the Company's investment income - net
was approximately $.46 per share and net realized capital gains were
approximately $.03 per share, while $.49 per share was distributed to the
shareholders. As you know, these distributions except for capital gains are
exempt from Federal income tax.
At the annual meeting on June 17, 2003, the prior year's directors, all of whom
are named below, were all re-elected to serve as directors until the next annual
meeting of shareholders, or until their successors are elected and have
qualified.
Shares Voted For Shares Withheld
---------------- ---------------
Mark Goodman 2,791,913.6992 None
Peter Goodman 2,791,913.6992 None
Jay S. Negin 2,791,913.6992 None
Warren F. Pelton 2,791,913.6992 None
Russell J. Stoever 2,791,913.6992 None
Also at the last annual meeting, the reappointment of Leslie Sufrin & Company,
P.C. as Tridan's auditors for the fiscal year ending April 30, 2004 was ratified
by the shareholders as follows:
Shares Voted For 2,791,913.6992
Shares Voted Against None
Shares Abstaining None
The Annual Shareholders' meeting will be held on Thursday, July 1, 2004 at 10:00
A.M. at the offices of Kantor, Davidoff, Wolfe, Mandelker & Kass, P.C., 17th
Floor, 51 East 42nd Street, New York City, New York 10017. The enclosed proxy
statement outlines the matters to be voted upon at this meeting, which each
shareholder is invited to attend. If you cannot attend, I urge you to fill in,
sign and promptly return the enclosed proxy so that, at least, your shares will
be represented at the meeting.
Sincerely,
TRIDAN CORP.
Peter Goodman, President
PG:bb
Enclosures
2
TRIDAN CORP.
FINANCIAL STATEMENTS
YEARS ENDED APRIL 30, 2004 AND 2003
with
INDEPENDENT AUDITOR'S REPORT
3
TRIDAN CORP.
TABLE OF CONTENTS
Page
----
INDEPENDENT AUDITOR'S REPORT 5
FINANCIAL STATEMENTS
Statements of Assets and Liabilities
April 30, 2004 and 2003 6
Schedules of Investments in Municipal Obligations
April 30, 2004 and 2003 7-11
Statements of Operations
Years Ended April 30, 2004 and 2003 12
Statements of Changes in Net Assets
Years Ended April 30, 2004, 2003 and 2002 13
Notes to Financial Statements 14-17
4
INDEPENDENT AUDITOR'S REPORT
To the Shareholders and Board of Directors
Tridan Corp.
We have audited the accompanying statements of assets and liabilities of Tridan
Corp., including the schedules of investments in municipal obligations, as of
April 30, 2004 and 2003, and the related statements of operations for the years
then ended, the statements of changes in net assets for each of the three years
in the period then ended and the financial highlights (Note 6) for each of the
five years in the period then ended. These financial statements and financial
highlights are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements and financial highlights. Our procedures
included confirmation of securities owned, as of April 30, 2004 and 2003, by
direct correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and the financial highlights, referred
to above, present fairly, in all material respects, the financial position of
Tridan Corp. as of April 30, 2004 and 2003, the results of its operations for
the years then ended, the changes in its net assets for each of the three years
in the period then ended and the financial highlights for each of the five years
in the period then ended, in conformity with accounting principles generally
accepted in the United States of America.
/s/ Leslie Sufrin and Company, P.C.
New York, NY
May 20, 2004
5
TRIDAN CORP.
STATEMENTS OF ASSETS AND LIABILITIES
April 30, 2004 and 2003
2004 2003
---- ----
ASSETS
Investments in municipal obligations, at
fair value (amortized cost - $35,800,684
and $35,936,827, respectively) $38,193,774 $39,369,918
Cash and cash equivalents 695,112 555,844
Accrued interest receivable 598,444 590,723
Prepaid insurance -- 4,868
----------- -----------
Total assets 39,487,330 40,521,353
----------- -----------
LIABILITIES
Accounts payable and accrued liabilities (Note 2) 74,520 83,265
Common stock redemption payable (Note 4) 40,831 --
----------- -----------
Total liabilities 115,351 83,265
----------- -----------
NET ASSETS
Net assets [equivalent to $12.61 and $12.94 per share,
respectively, based on 3,121,872.4389 shares and
3,125,658.4792 shares of common stock
outstanding, respectively (Note 4)] $39,371,979 $40,438,088
=========== ===========
The accompanying notes are an integral
part of these financial statements.
6
TRIDAN CORP.
SCHEDULES OF INVESTMENTS IN MUNICIPAL OBLIGATIONS
April 30, 2004 and 2003
2004 2003
------------------------------------- -------------------------------------
Principal Amortized Fair Principal Amortized Fair
Amount Cost Value Amount Cost Value
----------- ----------- ----------- ----------- ----------- -----------
Revenue Backed
Metropolitan Transportation Authority
NY Service Contract Commuter Facilities
(Escrowed to Maturity)
5.75% due July 1, 2008 $ 1,000,000 $ 984,400 $ 1,125,380 $ 1,000,000 $ 981,202 $1,164,670
Nassau County Interim Finance Authority
NY Sales Tax Secured
(Callable November 15, 2010 @100)
5.75% due November 15, 2013 1,100,000 1,136,796 1,264,758 1,100,000 1,141,429 1,270,610
N.Y.C. Municipal Water Finance Authority
NY Wtr & Swr Sys Rev
6.0% due June 15, 2009 2,000,000 2,121,650 2,294,540 2,000,000 2,142,272 2,355,840
N.Y.C. Transitional Finance Authority
NY Rev Future Tax Secured
5.0% due May 1, 2006 -- -- -- 1,250,000 1,296,075 1,368,563
N.Y.S. Dormitory Authority -
Rev Columbia University
5.0% due July 1, 2010 1,000,000 1,060,848 1,096,800 1,000,000 1,069,444 1,121,850
Revs Cons City Univ Genl Sys 2nd Ser
5.75 due July 1, 2013 215,000 248,091 240,525 -- -- --
Revs Ref
(Mandatory Put May 15, 2012 @100)
5.25% due November 15, 2023 1,000,000 1,096,135 1,079,570 1,000,000 1,099,158 1,097,450
Rev St Personal Income Tax Ed
5.5% due March 15, 2011 1,000,000 1,099,398 1,110,730 1,000,000 1,111,845 1,132,180
Revs State Univ Educ Facils of New York
7.5% due May 15, 2011 395,000 389,542 464,236 395,000 388,977 484,207
Revs State Univ Educ Facils of New York
(Escrowed to Maturity)
7.5% due May 15, 2011 195,000 192,306 237,161 195,000 192,026 247,847
New York Environmental Facilities Corp
Pollution Control Rev St Water NYC 02
5.75% due June 15, 2008 25,000 25,621 27,916 25,000 25,753 28,987
The accompanying notes are an integral
part of these financial statements.
7
TRIDAN CORP.
SCHEDULES OF INVESTMENTS IN MUNICIPAL OBLIGATIONS
(Continued)
April 30, 2004 and 2003
2004 2003
------------------------------------- -------------------------------------
Principal Amortized Fair Principal Amortized Fair
Amount Cost Value Amount Cost Value
----------- ----------- ----------- ----------- ----------- -----------
Revenue Backed (continued)
New York Environmental Facilities Corp
Pollution Control Rev St Water Revolv Fd
5.2% due May 15, 2014 $ 575,000 $ 641,621 $ 630,815 $ -- $ -- $ --
N.Y.S. Urban Development Corp -
Personal Inc Tax Rev St Facils & Equip
4.5% due March 15, 2006 -- -- -- 595,000 626,097 637,697
Purp Rev Sub Lien
6.0% due July 1, 2005 1,500,000 1,515,020 1,576,890 1,500,000 1,527,237 1,638,795
Niagara Falls Bridge Commission
NY Toll Rev Highway Impts
5.25% due October 1, 2015 2,000,000 2,118,029 2,193,800 2,000,000 2,125,761 2,277,920
Power Authority of the State of New York
General Purpose Ref
(Escrowed to Maturity)
6.5% due January 1, 2008 1,675,000 1,701,046 1,840,858 1,675,000 1,707,228 1,929,667
Triborough Bridge & Tunnel Authority NY -
General Purpose Revs
(Escrowed to Maturity)
5.5% due January 1, 2017 1,000,000 1,021,829 1,119,150 1,000,000 1,023,018 1,166,480
Revs General Purpose Ref
(Escrowed to Maturity)
6.0% due January 1, 2012 1,500,000 1,551,263 1,723,500 1,500,000 1,556,532 1,779,795
----------- ----------- ----------- ----------- ----------- -----------
16,180,000 16,903,595 18,026,629 17,235,000 18,014,054 19,702,558
----------- ----------- ----------- ----------- ----------- -----------
45.8%(*) 48.7%
Insured
City of Buffalo New York Sewer Auth
Rev Sewer System Impt
5.0% due July 1, 2011 1,110,000 1,200,050 1,210,211 -- -- --
Clarkstown Central School District
NY Unlimited Tax
5.25% due April 15, 2015 400,000 440,735 436,408 -- -- --
Cleveland Hill Union Free School District
Cheektowa NY Unlimited Tax
(Par Call October 15, 2009 @100)
5.5% due October 15, 2011 1,480,000 1,504,369 1,632,840 1,480,000 1,506,985 1,666,702
The accompanying notes are an integral
part of these financial statements.
8
TRIDAN CORP.
SCHEDULES OF INVESTMENTS IN MUNICIPAL OBLIGATIONS
(Continued)
April 30, 2004 and 2003
2004 2003
------------------------------------- -------------------------------------
Principal Amortized Fair Principal Amortized Fair
Amount Cost Value Amount Cost Value
----------- ----------- ----------- ----------- ----------- -----------
Insured (continued)
Commonwealth of Puerto Rico
General Obligation
5.5% due July 1, 2006 $ 600,000 $ 611,244 $ 644,598 $ 600,000 $ 616,085 $ 670,140
Commonwealth of Puerto Rico Highway
Transporation Auth Rev Ref
6.25% due July 1, 2016 285,000 344,752 338,600 -- -- --
Mt. Sinai, N.Y. Union Free School District
6.2% due February 15, 2011 1,070,000 1,067,024 1,240,173 1,070,000 1,066,681 1,271,042
N.Y.C. General Purpose
Unlimited Tax Series
6.75% due February 1, 2009 1,000,000 1,081,944 1,162,240 1,000,000 1,096,973 1,189,230
N.Y.S. Dormitory Authority Revs
City University Sys Cons
6.25% due July 1, 2005 -- -- -- 500,000 512,613 551,190
N.Y.S. Dormitory Authority Revs
Pace University
6.5% due July 1, 2009 1,000,000 1,069,818 1,162,140 1,000,000 1,081,432 1,207,210
N.Y.S. Urban Development Corp -
Corp Rev Ref Correction Facility
(Pre-Refunded to January 1, 2009 @101)
6.0% due January 1, 2012 1,000,000 1,024,008 1,143,740 1,000,000 1,026,571 1,143,600
Corp Rev Ref Correction Facility
5.5% due January 1, 2008 1,055,000 1,071,709 1,156,744 1,055,000 1,075,768 1,194,904
Puerto Rico Commonwealth Highway
and Transportation Auth Hwy Rev Ref
(Mandatory Put July 1, 2010 @100)
5% due July 1, 2035 1,000,000 1,089,731 1,088,640 1,000,000 1,091,043 1,103,590
Puerto Rico Commonwealth Highway
and Transportation Auth Transn Rev
5.25% due July 1, 2015 500,000 569,899 561,990 -- -- --
The accompanying notes are an integral
part of these financial statements.
9
TRIDAN CORP.
SCHEDULES OF INVESTMENTS IN MUNICIPAL OBLIGATIONS
(Continued)
April 30, 2004 and 2003
2004 2003
------------------------------------- -------------------------------------
Principal Amortized Fair Principal Amortized Fair
Amount Cost Value Amount Cost Value
----------- ----------- ----------- ----------- ----------- -----------
Insured (continued)
Suffolk County Judicial Facilities Agency
NY Service Agreement
Rev John P Cohalan Complex
(Callable October 15, 2009 @101)
5.75% due October 15, 2011 $ 1,340,000 $ 1,364,190 $ 1,501,925 $ 1,340,000 $ 1,365,846 $ 1,529,114
Suffolk County Water Authority
NY Waterworks Rev Sub Lien
6.0% due June 1, 2009 1,510,000 1,618,238 1,715,934 1,260,000 1,342,910 1,482,881
----------- ----------- ----------- ----------- ----------- -----------
13,350,000 14,057,711 14,996,183 11,305,000 11,782,907 13,009,603
----------- ----------- ----------- ----------- ----------- -----------
38.1%(*) 32.2%
General Obligations
N.Y.S. Ref Unlimited Tax
6.5% due July 15, 2005 1,700,000 1,730,438 1,799,994 1,700,000 1,754,425 1,878,874
Monroe County NY Ref Pub
Impts Unlimited Tax
6.0% due March 1, 2012 445,000 514,043 511,100 -- -- --
----------- ----------- ----------- ----------- ----------- -----------
2,145,000 2,244,481 2,311,094 1,700,000 1,754,425 1,878,874
----------- ----------- ----------- ----------- ----------- -----------
5.9%(*) 4.6%
Private Placement
Massachusetts Industrial Finance Agency
Bonds Series 2000 (Allen Chase
Foundation Project) adjusted fixed
rate (2.78%) due November 1, 2010 -- -- -- 357,143 357,143 358,922
----------- ----------- ----------- ----------- ----------- -----------
-- -- -- 357,143 357,143 358,922
----------- ----------- ----------- ----------- ----------- -----------
0.0%(*) 0.9%
U.S. Government Backed
Monroe County N.Y. Pub Imp Unlimited Tax -
(Pre-Refunded to June 1, 2008 @101)
6.0% due June 1, 2010 890,000 894,444 1,016,060 890,000 895,036 1,051,891
(Callable June 1, 2008 @101)
6.0% due June 1, 2010 10,000 10,050 11,111 10,000 10,057 11,389
City of New York NY Ref Unlimited Tax
6.0% due May 15, 2030 150,000 178,794 174,635 -- -- --
New York Environmental Facilities Corp
Pollution Control Rev St Wtr Fund Ref
(Escrowed to Maturity)
5.75% due June 15, 2008 1,310,000 1,342,514 1,472,584 1,310,000 1,349,452 1,523,975
The accompanying notes are an integral
part of these financial statements.
10
TRIDAN CORP.
SCHEDULES OF INVESTMENTS IN MUNICIPAL OBLIGATIONS
(Continued)
April 30, 2004 and 2003
2004 2003
---------------------------------------- ----------------------------------------
Principal Amortized Fair Principal Amortized Fair
Amount Cost Value Amount Cost Value
------------ ------------ ------------ ------------ ------------ ------------
U.S. Government Backed (continued)
New York Environmental Facilities Corp
Pollution Control Rev St Wtr NYC 02
(Escrowed to Maturity)
5.75% due June 15, 2008 $ 165,000 $ 169,095 $ 185,478 $ 165,000 $ 169,969 $ 191,951
N.Y.S. Medical Care Facility Finance
Agency - Rev NY Hospital Mortgage
6.8% due August 15, 2024 -- -- -- 1,000,000 1,100,475 1,116,810
------------ ------------ ------------ ------------ ------------ ------------
2,525,000 2,594,897 2,859,868 3,375,000 3,524,989 3,896,016
------------ ------------ ------------ ------------ ------------ ------------
7.3%(*) 9.6%
Short-term
N.Y.S. Thruway Authority Highway
and Bridge Trust Fund
6.4% due April 1, 2004 -- -- -- 500,000 503,309 523,945
------------ ------------ ------------ ------------ ------------ ------------
-- -- -- 500,000 503,309 523,945
------------ ------------ ------------ ------------ ------------ ------------
0.0%(*) 1.3%
$ 34,200,000 $ 35,800,684 $ 38,193,774 $ 34,472,143 $ 35,936,827 $ 39,369,918
============ ============ ============ ============ ============ ============
97.0%(*) 97.4%
(*) Represents percentage of net assets.
The accompanying notes are an integral
part of these financial statements.
11
TRIDAN CORP.
STATEMENTS OF OPERATIONS
Years Ended April 30, 2004 and 2003
2004 2003
---- ----
Investment income:
Interest $ 1,994,877 $ 1,970,045
Amortization of bond premium and discount - net (205,570) (198,856)
----------- -----------
Total investment income 1,789,307 1,771,189
----------- -----------
Expenses:
Investment advisory fee (Note 2) 110,670 110,841
Professional fees (Note 2) 92,195 90,817
Directors' fees 49,500 54,000
Administrative and accounting fees 68,380 67,100
State and local income taxes, insurance and
administrative expenses (Note 1) 13,183 11,672
----------- -----------
Total expenses 333,928 334,430
----------- -----------
Investment income - net 1,455,379 1,436,759
----------- -----------
Realized and unrealized gain on investments:
Net realized gain on investments 97,761 19,263
Change in unrealized appreciation (depreciation)
of investments for the year (1,040,001) 1,214,326
----------- -----------
Net gain (loss) on investments (942,240) 1,233,589
----------- -----------
Net increase in net assets resulting from operations $ 513,139 $ 2,670,348
=========== ===========
The accompanying notes are an integral
part of these financial statements.
12
TRIDAN CORP.
STATEMENTS OF CHANGES IN NET ASSETS
Years Ended April 30, 2004, 2003 and 2002
2004 2003 2002
---- ---- ----
Increase (decrease) in net assets resulting
from operations:
Investment income - net $ 1,455,379 $ 1,436,759 $ 1,486,157
Net realized gain on investments 97,761 19,263 60,341
Change in unrealized
appreciation (depreciation) (1,040,001) 1,214,326 613,845
----------- ----------- -----------
Net increase in net assets resulting
from operations 513,139 2,670,348 2,160,343
Distributions to shareholders from:
Investment income - net (1,437,093) (1,428,295) (1,498,387)
Capital gains - net (94,383) (41,373) (67,147)
Redemptions of shares, 3,786.0403 shares,
2,689.7041 shares, and
2,695.3647 shares, respectively (47,772) (34,351) (33,715)
----------- ----------- -----------
Total increase (decrease) (1,066,109) 1,166,329 561,094
Net assets:
Beginning of year 40,438,088 39,271,759 38,710,665
----------- ----------- -----------
End of year (a) (b) $39,371,979 $40,438,088 $39,271,759
=========== =========== ===========
(a) For the years ending April 30, 2004, 2003 and 2002 includes over
distributed investment income of $9,383, $27,669 and $36,133,
respectively.
(b) For the years ending April 30, 2004, 2003 and 2002 includes undistributed
capital gains of $9,028, $5,650 and $27,760, respectively.
The accompanying notes are an integral
part of these financial statements.
13
TRIDAN CORP.
NOTES TO FINANCIAL STATEMENTS
April 30, 2004 and 2003
Note 1 - Significant accounting policies
The following is a summary of the significant accounting policies followed by
Tridan Corp. (the "Company"), a closed-end, non-diversified management
investment company, registered under the Investment Company Act of 1940, in the
preparation of its financial statements.
Acquisition and valuation of investments
Investment transactions are accounted for on the date the securities are
purchased/sold (trade date) and interest on securities acquired/sold is included
in income from/to the settlement date. Investments are carried at amortized cost
in the Company's accounting records but are displayed at fair value in the
accompanying financial statements. Short-term investments are stated at cost,
which is equivalent to fair value.
Fair values for the Company's investments in municipal obligations have been
determined based on the bid price of the obligation, if available; if not
available, such value is based on a yield matrix for similarly traded municipal
obligations.
Amortization of bond premium or discount
In determining investment income, bond premiums or discounts are amortized over
the remaining term of the obligation.
Income taxes
It is the Company's policy to comply with the requirements of the Internal
Revenue Code that are applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no income tax provision is required.
Interest income from municipal investments are exempt from Federal and state
income taxes.
Cash and cash equivalents
The Company considers all investments that can be liquidated on demand to be
cash equivalents. Cash and cash equivalents, at April 30, 2004 and 2003, were as
follows:
April 30,
---------------------
2004 2003
---- ----
Cash - demand deposits $608,112 $187,844
Cash equivalents - demand bonds and notes 87,000 368,000
-------- --------
$695,112 $555,844
======== ========
The Company maintains all of its cash on deposit in one financial institution.
At times, such amounts on deposit may be in excess of amounts insured by the
Federal Deposit Insurance Corporation.
14
TRIDAN CORP.
NOTES TO FINANCIAL STATEMENTS
April 30, 2004 and 2003
Note 1 - Significant accounting policies (continued)
Use of estimate
The preparation of financial statements, in conformity with generally accepted
accounting principles, requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of increases and decreases in net assets from operations
during the reporting period. Actual results could differ from those estimates.
Significant estimates are used in determining the fair value of investments.
Concentration of credit risk
The value of the Company's investments may be subject to possible risks
involving, among other things, the continued credit worthiness of the various
state and local government agencies and public financing authorities underlying
its investments. The Company and its investment adviser periodically consider
the credit quality of the Company's investments, and the Company adheres to its
investment objective of investing only in investment grade securities.
Note 2 - Accounts payable and accrued liabilities
Accounts payable and accrued liabilities consisted of the following at:
April 30,
-------------------
2004 2003
---- ----
Accrued investment advisory fees (a) $27,500 $28,000
Accrued audit fees (b) 24,955 27,600
Accrued legal fees (c) 19,965 19,711
Accrued accounting fees and other 2,100 7,954
------- -------
$74,520 $83,265
======= =======
(a) The Company utilizes the services of J.P. Morgan Investment Management,
Inc. ("J.P. Morgan") as its investment adviser and custodian for its
investments. The annual advisory fee is .28 of one percent of the net
assets under management. The fee is computed and payable quarterly, based
on the aggregate fair value of the net assets on the last day of each
fiscal quarter.
(b) For the years ending April 30, 2004 and 2003, the Company incurred audit
fees of approximately $30,000 and $34,000, respectively.
(c) For the years ending April 30, 2004 and 2003, the Company incurred legal
fees of approximately $62,000 and $59,000, respectively, which include
professional fees paid to the law firm of which an officer of the Company
is a member.
15
TRIDAN CORP.
NOTES TO FINANCIAL STATEMENTS
April 30, 2004 and 2003
Note 3 - Investment transactions
Purchases and sales of investments in municipal obligations (excluding
short-term and demand investments) amounted to approximately $4,447,000 and
$4,484,000 for the year ended April 30, 2004 and $3,938,000 and $1,637,000,
respectively, for the year ended April 30, 2003.
The U.S. Federal income tax basis of the Company's investments, at April 30,
2004 and 2003, was approximately $35,801,000 and $35,937,000, respectively, and
net unrealized appreciation, at April 30, 2004 and 2003, for U.S. Federal income
tax purposes was approximately $2,393,000 and $3,433,000, respectively (gross
unrealized appreciation of approximately $2,455,000 and $3,435,000,
respectively; gross unrealized depreciation of approximately of $62,000 and
$2,000, respectively).
Note 4 - Common stock, share redemption plan and net asset values
At April 30, 2004 and 2003, there were 6,000,000 shares of $0.02 par value
common stock authorized of which 3,199,100 had been issued aggregating $63,982,
and additional paid-in capital aggregating $312,787.
The Company's share redemption plan permits "eligible shareholders" or their
estates to have their shares redeemed upon reaching age 65 or upon death. Shares
are redeemed at the net asset value per share, based on fair value, as of the
end of the Company's fiscal quarter in which the request for redemption is
received. At April 30, 2004 and 2003, $901,052 (77,227.5611 shares) and $853,280
(73,441.5208 shares), respectively, had been redeemed under this plan and are
held in treasury.
The net asset value per share is calculated by dividing the aggregate fair value
of all assets less the aggregate fair value of all liabilities by the number of
common shares outstanding at the end of the period.
The net asset value per share and the shares outstanding were as follows:
April 30,
-----------------------
2004 2003
---- ----
Net asset value:
- at fair value of the underlying investments $12.61 $12.94
- at amortized cost $11.85 $11.84
Shares outstanding at:
April 30, 2004 3,121,872.4389
April 30, 2003 3,125,658.4792
16
TRIDAN CORP.
NOTES TO FINANCIAL STATEMENTS
April 30, 2004 and 2003
Note 5 - Distributions
During the years ended April 30, 2004 and 2003, distributions of $1,531,476
($.49 per share) and $1,469,668 ($.47 per share), respectively, were declared
and paid to shareholders, which, except for capital gains of $94,383 in 2004 and
$41,373 in 2003, were exempt from Federal income taxes.
Note 6 - Financial highlights
Selected per share data and ratios.
For the Fiscal Years Ended April 30,
------------------------------------------------------
2004 2003 2002 2001 2000
---- ---- ---- ---- ----
Per share data:
(For a share of capital stock outstanding
throughout the period):
Investment income $ .57 $ .58 $ .57 $ .62 $ .62
Expenses (.11) (.11) (.10) (.09) (.10)
------ ------ ------ ------ ------
Investment income - net .46 .47 .47 .53 .52
Net realized and unrealized gain
(loss) on investments (.30) .39 .22 .54 (.59)
Distributions:
Investment income - net (.46) (.46) (.48) (.53) (.54)
Capital gains - net (.03) (.01) (.02) (.03) (.06)
------ ------ ------ ------ ------
Net increase (decrease) in net asset value (.33) .39 .19 .51 (.67)
Net asset value:
Beginning of year 12.94 12.55 12.36 11.85 12.52
------ ------ ------ ------ ------
End of year $12.61 $12.94 $12.55 $12.36 $11.85
====== ====== ====== ====== ======
Ratios:
Expenses to average net assets .84% .84% .80% .76% .81%
Investment income - net
to average net assets 3.65% 3.60% 3.81% 4.36% 4.28%
Average (simple) number of shares
outstanding (in thousands) 3,124 3,127 3,130 3,132 3,135
17
Tridan Corp.
and
Tridan Corp. Employees Stock Ownership Trust
Privacy Policy
The directors and management of Tridan Corp. and Tridan Corp. Employees
Stock Ownership Trust ("ESOT") respect the privacy of nonpublic personal
information that we collect from our shareholders and ESOT participants. This
notice provides information regarding our policies and practices surrounding the
collection and handling of nonpublic personal information. The words "we" and
"us" refer to Tridan Corp. and the ESOT. The words "you" and "your" refer to our
shareholders and ESOT participants, present and past.
Types of Information We Collect
During the course of our relationship, you sometimes share with us
nonpublic personal information, such as your address, social security number,
age, and number of shares owned by you. We collect this information from
applications, verbal communications, and correspondence with you. We may also
receive this information from firms that assist us in administering your account
and processing transactions on your behalf. We collect this information in order
to handle your account properly and provide you with the services you expect to
receive.
Use and Disclosure of Personal Financial Information
We may use your nonpublic personal information in order to provide you
with distributions, custodial, accounting, administrative and other shareholder
services.
We do not disclose any nonpublic personal information about you to anyone,
except as permitted by law.
We are permitted under law to disclose nonpublic personal information
about you to third parties in certain circumstances. For example, we may
disclose your nonpublic personal information to third parties that assist us in
providing services to you.
On occasion, we may be required to provide information about you and your
accounts and transactions to governmental agencies, in order to fulfill legal
and regulatory requirements. We will comply with these laws, to the extent we
are required to do so.
Safeguarding Your Personal Financial Information
We restrict access to your nonpublic personal information to those who
have a need to know that information in order to provide services to you. We
maintain physical, electronic, and/or procedural safeguards that meet the
standards of applicable laws and regulations.
18
Item 2. Code of Ethics
The registrant has adopted a code of ethics that applies to its
principal executive officer, principal financial officer, and any other
person required by applicable SEC rules. The code of ethics was in
effect as of the end of the period covered by this report. During that
period, there were no amendments to the code, and no waivers were
granted to anyone from any provision of the code. A copy of the
registrant's code of ethics is filed herewith as an exhibit to this
report.
Item 3. Audit Committee Financial Expert
The registrant has established an audit committee consisting of three
members appointed by the board of directors from the board. The
registrant's board of directors has determined that the committee
chairman, Paul Kramer, is an "audit committee financial expert" and is
"independent", as both terms are defined by applicable SEC rules.
Item 4. Principal Accountant Fees and Services
Incorporated by reference from the registrant's proxy statement dated
June 17, 2004, filed electronically with the SEC. See section therein
entitled "Relationship with and Ratification of Independent Certified
Public Accountants".
Item 5. Audit Committee of Listed Registrants.
Not applicable, because the registrant is not a listed issuer.
Item 6. Schedule of Investments.
A schedule of registrant's investments in securities of unaffiliated
issuers as of April 30, 2004 is included as part of its report to
shareholders filed under Item 1 of this Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable, because the registrant invests exclusively in non-voting
securities.
19
Item 8. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable, because the registrant has no equity securities that
are registered pursuant to Section 12 of the Securities Exchange Act of
1934
Item 9. Submission of Matters to a Vote of Security Holders.
The registrant does not have in place procedures by which shareholders
may recommend nominees to the registrant's board of directors.
Item 10. Controls and Procedures
(a) The registrant's principal executive and principal financial
officers have evaluated the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c)) as of the end of the
period covered by this report. Based on that evaluation, said
officers have concluded that the registrant's disclosure controls
and procedures are effective to ensure that information required
to be disclosed in this report is recorded, processed, summarized
and reported within the required time periods.
(b) Reportage on the registrant's internal control over financial
reporting is not required until the report applicable to the
registrant's fiscal year ending April 30, 2005.
Item 11. Exhibits
(a) The following exhibits are filed herewith:
(1) The registrant's code of ethics described in Item 2 hereof.
(2) The separate certifications for the registrant's principal
executive and principal financial officers.
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SIGNATURES
Pursuant to the requirements of the Investment Company Act of 1940, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
(Registrant) Tridan Corp.
By (Signature and Title) /S/ Peter Goodman
-----------------
Peter Goodman, President and Chief Executive Officer
Date: June 10, 2004
Pursuant to the requirements of the Investment Company Act of 1940, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
By (Signature and Title) /S/ Peter Goodman
-----------------
Peter Goodman, President and Chief Executive Officer
Date: June 10, 2004
By (Signature and Title) /S/ Warren F. Pelton
--------------------
Warren F. Pelton, Treasurer and Chief Financial Officer
Date: June 10, 2004
21